2.28 and falling, Yippee....
Jan 12th 2008, 1:45 am
#106
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: 2.28 and falling, Yippee....
China has high interest rates too.
I'd rather have higher interest rates due to booming economy than recession.
Jan 12th 2008, 2:02 am
#107
Ex BE ***** Addict
Thread Starter
Joined: Jul 2005
Posts: 3,770
Re: 2.28 and falling, Yippee....
No not really. by the time you take inflation into account, say 3% ish for both countries, in Oz you will be gaining 7% over inflation and uk only 2% (3 times the amount)
Technically the money is worth the same in both countries whereas a percentage is a percentage. In this case the higher the better.
Technically the money is worth the same in both countries whereas a percentage is a percentage. In this case the higher the better.
Jan 12th 2008, 2:06 am
#108
Ex BE ***** Addict
Thread Starter
Joined: Jul 2005
Posts: 3,770
Re: 2.28 and falling, Yippee....
With big boom comes big bust though. The UK long ago diversified to other things to reduce the severity and chance of the boom bust cycle, here I'm not sure the same can be said.
Jan 12th 2008, 2:21 am
#110
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: 2.28 and falling, Yippee....
Australian economy is based on commodities and lives and dies by their price. Manufacturing is tiny here - always has been, always will. Attempts to boost manufacturing have been unsuccessful and is not worth the effort.
Right now we are in the midst of a commodity boom which shows no sign of abating - we all know the reasons for it. Also food prices are rising rapidly globally - and Australia produces a lot of food, despite drought.
The only thing that is going to derail the Australian economy is an Asian economic reversal. It could happen but who would predict it? If that happens then the whole world will be affected, not just Australia.
